Summary of Financial Results for Fiscal Period Ended December 31, 2018 (Infrastructure Fund)I n f ra st r uct u re Fu n d I s s ue r
S e c u r i t i e s C o d e
R e p r e s e n t a t i v e
Asset Management Company
R e p r e s e n t a t i v e
C

o

n

t

a

c

t

Scheduled filing date of securities
reportSupplementary materials forfinancial results
Financial results briefing session

February 15, 2019
L i s t e d S t o c k Tokyo Stock
Canadian Solar Infrastructure Fund, Inc.
E x c h a n g e Exchange
9284
URL
https://www.canadiansolarinfra.com/(Title)Executive Director(Name) Yoshihisa Otake
Canadian Solar Asset Management K.K.
CEO and Representative(Title)(Name) Yoshihisa Otake
Director(Title)Chief Financial Officer(Name) Hiroshi Yanagisawa
Tel.
03(6279)0311
Scheduled date ofcommencement of cash
distribution payment

March 29, 2019

March 14, 2019

YES
YES（For institutional investors and analysts）(Amounts are rounded down to million yen)
1. Status of Management and Assets for Fiscal Period Ended December 31, 2018 (from July 1, 2018 to December 31, 2018)(1) Management Status(Percentage figures are the rate of period-on-period change)
Operating revenues
Operating income
Ordinary income
Net income
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal period ended
1,785
644
413
24.4
412
24.7
11.7)
23.7
Dec. 2018
Fiscal period ended
2,023
845
331
330
Jun. 2018
Profit per unit

Rate of returnon equity

Ordinary profit tototal assets ratio

Ordinary profit tooperating revenue ratio

yen
%
%
%
Fiscal period ended
1,932
2.1
1.0
23.1
Dec. 2018
Fiscal period ended
2,007
3.7
1.8
16.4
Jun. 2018(Note 1) The calculation period of the second fiscal period is from October 1, 2017 to June 30, 2018 (273 days); however, thesubstantial period of asset management is from October 30, 2017 to June 30, 2018 (244 days).
(Note 2) Profit per unit for the fiscal period ended June 30, 2018 is calculated by dividing profit by the daily weighted average numberof investment units (164,642 units). In addition, profit per unit calculated by division by the daily weighted average numberof investment units (181,846 units) is 1,817 yen, deeming that the beginning of the fiscal period is October 30, 2017 when
the period of asset management substantially commenced.
(2) Status of Cash Distributions
Distributions
per unit(excluding
distributions
in excess ofearnings)
Yen
Fiscal period
ended Dec. 2018
Fiscal period
ended Jun. 2018

Total
distributions Distributions in(excludingexcess of
distributions
earnings perin excess ofunit
earnings)
Million yen
Yen

Million yen

Distributions
per unit(including
distributions
in excess ofearnings)
Yen

%

%

1,783

412

1,817

420

3,600

832

92.3

1.8

1,542

280

808

147

2,350

428

76.9

1.6

Total
distributions
in excess ofearnings

Total
distributions(including
distributions
in excess ofearnings)
Million yen

Payout ratio

Ratio ofdistributions to
net assets(Note 1) The payout ratio is calculated according to the following formula.
Payout ratio = distributions per unit (excluding distributions in excess of earnings) / profit per unit x 100(Note 2) The payout ratio and the ratio of distributions to net assets are calculated based on the numerical data excluding
distributions in excess of earnings.
(Note 3) Total distributions in excess of earnings are all refunds of investments that constitute distributions on the decrease ofcapital contribution under the tax law.
(Note 4) The ratio of the decrease in net assets upon distributions in excess of earnings (refunds of investments that constitutedistributions on decrease of capital contribution under the tax law) is 0.007 for the fiscal period ended June 30, 2018
and 0.02 for the fiscal period ended December 31, 2018. In this regard, the ratio of the decrease in net assets is- 1 -calculated according to Item 4, Paragraph 1, Article 23 of the Ordinance for Enforcement of the Corporation Tax
Act.
(3) Financial Position
Total assets
Million yen

Net assets
Million yen

46,77335,841

Fiscal period ended
Dec. 2018
Fiscal period ended
Jun. 2018

Equity ratio

Net assets per unit%

yen

22,31547.7

96,523

17,59649.1

96,583(4) Status of Cash Flows

Million yen

Million yen

Million yen

Cash and cash
equivalents at the endof the fiscal period
Million yen

2,434(11,692)

10,4493,222(1,246)(31,882)

35,0702,031

Cash flows fromoperating activities
Fiscal period ended
Dec. 2018
Fiscal period ended
Jun. 2018

Cash flows frominvesting activities

Cash flows fromfinancing activities

2. Forecasts of Management Status for Fiscal Period Ending June 30, 2019 (from January 1, 2019 to June 30, 2019), Fiscal PeriodEnding December 31, 2019 (from July 1, 2019 to December 31, 2019) and Fiscal Period Ending June 30, 2020 (from January 1,
2020 to June 30, 2020)(Percentage figures are the rate of period-on-period change)
Operating revenues Operating income

Fiscal period
ending June2019
Fiscal period
ending Dec.
2019
Fiscal period
endingJune. 2020

Ordinary income

Distributions perunit (excluding
distributions inexcess of
earnings)

Net income

Distributions inexcess of earnings
per unit

Distributions perunit (including
distributions inexcess of
earnings)

Millionyen%

Millionyen%

Millionyen%

Million
yen

%

yen

yen

yen

2,072

16.0

703

9.1

573

38.8

572

38.8

2,478

1,122

3,600

2,154

3.9

784

11.5

659

14.9

658

14.9

2,849

751

3,600

2,062

(4.2)

723

(7.7)

602

(8.5)

602

(8.5)

2,605

995

3,600

(Reference)
Fiscal period ending June 30, 2019(181 days): Forecast total number of investment units issued and outstanding at end of theperiod: 231,190 units, Forecast profit per unit: 2,478 yen
Fiscal period ending December 31, 2019 (184 days): Forecast total number of investment units issued and outstanding at endof the period: 231,190 units, Forecast profit per unit: 2,849 yen
Fiscal period ending June 30, 2020(182 days): Forecast total number of investment units issued and outstanding at end of theperiod: 231,190 units, Forecast profit per unit: 2,605 yen* Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(i) Changes in accounting policies associated with amendments to accounting standards, etc.: No(ii) Changes in accounting policies other than (i):No
(iii) Changes in accounting estimates:No(iv) Retrospective restatement
No

- 2 -

(2) Total number of investment units issued and outstanding(i) Total number of investment units issued and outstanding(including treasury units) at end of period(ii) Number of treasury units at end of period

Fiscal period
Dec. 2018
Fiscal period
Dec. 2018

231,1900

Fiscal period
Jun. 2018
Fiscal period
Jun. 2018

182,1900(Note) For the number of investment units based on which profit per unit is calculated, please refer to “Notes regarding
information per unit” on page 276 below.
*

Presentation of Status of Implementation of Audit ProceduresThis financial report is not subject to audit procedures under the Financial Instruments and Exchange Act (Act No. 25 of 1948
including subsequent amendments), and audit procedures pursuant to the Financial Instruments and Exchange Act have not been
completed at the time of disclosure of this financial report.

*

Explanation of Appropriate Use of Forecast of Management Status and Other Matters of Special Note
Forecast of management status and other forward-looking statements contained in this document are based on information that iscurrently available and certain assumptions that are deemed reasonable by Canadian Solar Infrastructure Fund. Accordingly, theactual management status, etc. may differ materially due to various factors. In addition, the forecast is not a guarantee of theamount of cash distributions. For details of the assumptions underlying the forecast of management status, please refer to“Assumptions Underlying Forecast of Management Status for Fiscal Period Ending June 30, 2019 (January 1, 2019 to June 30,2019), Fiscal Period Ending December 31, 2019 (July 1, 2019 to December 31, 2019) and Fiscal Period Ending June 30, 2020
(January 1, 2020 to June 30, 2020)” described on or after page9 below.

- 3 -1. Associated Corporations of Canadian Solar Infrastructure Fund
Disclosure is omitted because there have been no significant changes from the description in the latest securities report (submitted
on September 26, 2018).

2. Management Policy and Management Status(1) Management Policy
Disclosure is omitted because there have been no significant changes from the description in the latest securities report (submitted
on September 26, 2018).
(2) Management Status
I. Overview of the Fiscal Period under Review
a. Brief History of Canadian Solar Infrastructure Fund
Canadian Solar Infrastructure Fund, Inc. (hereinafter referred to as “CSIF”) was established on May 18, 2017 with money
invested of 150 million yen (1,500 units) by Canadian Solar Asset Management K.K. (hereafter referred to as the “AssetManager”) as the founder under the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951 including
subsequent amendments; hereinafter referred to as the “Investment Trusts Act”). Registration with the Kanto Local Finance
Bureau was completed on June 9, 2017 (registration number 127, filed with the Director of the Kanto Local Finance Bureau).
CSIF issued additional investment units (177,800 units) through a public offering on October 27, 2017, listed its investment
units on Tokyo Stock Exchange Inc.’s (hereinafter referred to as the “Tokyo Stock Exchange”) Infrastructure Fund Market on
October 30, 2017 (security code: 9284), and issued new investment units (2,890 units) through third-party allotment on
November 28, 2017.
In addition, CSIF issued new investment units (46,667 units) through public offering on September 6, 2018 and issued newinvestment units (2,333 units) through third-party allotment on October 4, 2018. As a result, the total units issued at the end of
the fiscal period under review (as of December 31, 2018) were 231,190 units.
b. Investment Environment
During the fiscal period under review, the Japanese economy recovered at a moderate pace, mainly attributable to a gradualincrease in capital expenditure and improvements in corporate earnings and the employment situation, which have continued
since the previous fiscal period. Going forward, the economy is expected to continue its mild recovery trend, backed by continued
improvement in the employment situation and personal income. Nonetheless, attention needs to be paid to the impact of monetary
policy decisions in the US, uncertainties in other parts of the global economy and fluctuations in financial and capital markets.
Reflecting changes in the monetary policy in the US and other factors, the stock market in Japan has been experiencing
instability. Meanwhile, the Infrastructure Fund Market, which had remained defensive, has been somewhat bearish due to theimpact of a newspaper report concerning the feed-in tariff (FIT) since September 2018.
In the environment surrounding the renewable energy power generation facilities (those stipulated in Article 2, Paragraph 3 of
the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities(Act No. 108 of 2011 including subsequent amendments. Hereinafter referred to as the “Act on Renewal Energy Special
Measures”) (excluding those that fall under real estate). Hereinafter referred to as “renewable energy power generation facilities”)
held by CSIF, improvement in the self-sufficiency rate of primary energy and a reduction of greenhouse gas emissions remain
as challenges. In Japan’s energy plan announced by the Ministry of Economy, Trade and Industry in July 2015, the energy mix(energy supply demand structure) for the target year 2030 under the long-term energy supply and demand outlook was revised
and re-formulated from a long-term perspective in light of the Fourth Strategic Energy Plan, under which the use of renewableenergy was introduced (22-24% in power source composition). The Fifth Strategic Energy Plan approved by the Cabinet as ofJuly 3, 2018 presents measures for the use of renewable energy as the major power source, including a reduction in the
procurement cost of renewable energy, overcoming power grid constraints and securing load following capacity. The new planalso set out Japan’s new energy scenario towards 2050 with the aim to achieve economic efficiency, decarbonization and the useof renewable energy as the major power source.
CSIF has obtained authorization for the feed-in tariff from the Ministry of Economy, Trade and Industry at an early stage.
However, for projects in which electric power generation did not commence for a long time, there has been consideration of themeasures to apply fair purchase prices that reflect the costs at the time of the start of operation, not high purchase prices basedon the costs at the time when authorization was granted. For revision to the Ordinance for Enforcement of the Act on Special
Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities (Ordinance of the
Ministry of Economy, Trade and Industry No. 46 of 2012; hereinafter referred to as the “Ordinance for Enforcement of the Act- 4 -on Renewable Energy Special Measures”) with the purpose of enforcement on April 1, 2019, public comments were collected
for one month from October 22, 2018. Such movements do not have any impact on the facilities in operation of CSIF.
c. Management Performance
During the previous fiscal period, CSIF acquired 13 photovoltaic power generation facilities, etc. (Note 3) on October 31,
2017 (a total panel output (Note 1) of 72.7MW and a total acquisition price (Note 2) of ¥30,438 million) using the net proceedsfrom the issuance of new investment units through public offering as well as borrowings in accordance with the basic asset
management policy, etc. set forth in its Articles of Incorporation, and commenced substantive investment operations. In addition,
two photovoltaic power generation facilities, etc. (a total panel output of 2.6MW and a total acquisition price of ¥992 million)
were acquired on February 1, 2018 using borrowings with the aim of improving CSIF’s portfolio and expanding external growth.
As a result, CSIF held and managed a portfolio consisting of 15 photovoltaic power generation facilities, etc. (a total panel output
of 75.3MW and a total price (Note 4) of ¥35,963 million) as of the end of the previous fiscal period.
During the fiscal period under review, CSIF acquired an additional three photovoltaic power generation facilities, etc. on
September 6, 2018 (a total panel output of 30.3MW and a total acquisition price of ¥11,530 million) using the net proceeds fromthe issuance of new investment units through public offering as well as borrowings. As a result, CSIF held a portfolio consistingof 18 photovoltaic power generation facilities, etc. (a total panel output of 105.6MW and a total price of ¥47,100 million) as ofthe end of the fiscal period under review. CSIF achieved steady growth to an asset scale of over 100MW panel output for the
first time as a listed infrastructure fund.
(Note 1) “Panel output” shall mean output calculated by multiplying rated output per solar cell module (meaning the maximum output stated in
specifications of solar cell module) used in each solar energy facility by the total number of panels. The same shall apply hereunder.
(Note 2) “Acquisition price” shall mean the sale and purchase price (excluding outsourcing service fees and other acquisition expenses related to theacquisition of assets, property-related taxes, urban planning taxes, consumption taxes and other fees and charges) described in the sale andpurchase agreement pertaining to each asset acquired. It shall be rounded down to the nearest one million yen. The same shall apply hereunder.
(Note 3) “Renewable energy power generation facilities, etc.” shall collectively refer to renewable energy power generation facilities as well as realestate and the right of lease (including the right of sublease) of real estate or the surface right (hereinafter referred to as “Site, etc.”) to install,
maintain and operate the renewable energy power generation facilities. In addition, “photovoltaic power generation facilities, etc.” shallcollectively refer to photovoltaic power generation facilities (of renewable energy power generation facilities, photovoltaic power generation
facilities shall specifically refer to renewable energy power generation facilities that generate power using solar light as the source of energy;
the same shall apply hereunder) as well as real estate and the right of lease (including the right of sublease) of real estate or the surface rightto install, maintain and operate photovoltaic power generation facilities. The same shall apply hereunder.
(Note 4) “Price” shall mean the intermediate value calculated by CSIF using the appraisal value of each power plant as of June 30, 2018 for theprevious fiscal period and as of December 31, 2018 for the fiscal period under review as stated in valuation reports obtained fromPricewaterhouseCoopers Sustainability LLC. The same shall apply hereunder.

d. Overview of Financing
In the fiscal period under review, CSIF raised ¥4,734 million through public offering in September 2018 and third-party
allotment of additionally issued investment units (49,000 units) in October 2018. In addition, a total of ¥8,850 million wasborrowed in September 2018. On the other hand, a contractual repayment was made at the end of the fiscal period underreview, and the amount of borrowings as of the end of the fiscal period under review came to ¥24,297 million. Consequently,
the ratio of interest-bearing debt to total assets (ratio of interest-bearing debt to total assets at the end of fiscal period) was
51.9%.

e. Overview of Business Performance and Distributions
As a result of the management described above, the business performance in the fiscal period under review recorded operating
revenue of ¥1,785 million, operating income of ¥644 million (mainly due to the impact of unseasonable weather), ordinary
income of ¥413 million and net income of ¥412 million.
Pursuant to the cash distribution policy set forth in Article 47, Paragraph 1 of its Articles of Incorporation, CSIF shall
distribute an amount in excess of the amount equivalent to 90% of its distributable earnings as defined in Article 67-15 of the
Act on Special Measures Concerning Taxation.
In addition, distributions in excess of earnings are calculated on the premise that such distributions will generally be made inaccordance with the cash distribution policy prescribed in CSIF’s Articles of Incorporation and the Asset Manager’s asset
management guidelines formulated as part of its internal regulations.
CSIF intends to make cash distributions to its unitholders for each fiscal period from free cash flow (hereinafter referred toas “FCF”) generated by its renewable energy power generation facilities, in amounts determined in the following manner. The
amount available for distribution shall be calculated by multiplying FCF, that is net cash flow (hereinafter referred to as “NCF”;- 5 -CSIF shall incorporate the total amount of NCF remaining after deducting distributions for the preceding fiscal periods incalculating NCF) to be vested to equity investors after deducting FCF payable to debt investors, by a certain ratio (hereinafterreferred to as “payout ratio”; The payout ratio for the 3rd fiscal period is 79.1%.) determined by CSIF in light of the amount of
NCF for each fiscal period.
At the same time, CSIF intends to maintain a stable level of distributions for the time being. In determining the payout ratio
described above, CSIF will consider the forecast NCF for each fiscal period to realize that level of distributions.
In addition to a cash distribution within the range of profit, CSIF intends to make distributions in excess of earnings foreach fiscal period on a continuous basis in order to realize this policy.
In developing its performance forecast (including any revisions thereof) for each fiscal period, in the case where NCF
calculated from actual energy output in a fiscal period (hereinafter referred to as “actual NCF”; CSIF shall incorporate the total
amount of NCF remaining after deducting distributions for the preceding fiscal periods in calculating actual NCF) exceeds NCF
projected for the fiscal period (hereinafter referred to as “projected NCF”; CSIF shall incorporate the total amount of NCF
remaining after deducting distributions for the preceding fiscal periods in calculating projected NCF) on the basis of an energy
output value projected by professional specialists (P50) which forms the foundation for the calculation of rents with regard to
the renewable energy power generation facilities, CSIF intends to limit the cash distribution to the amount of projected NCF
multiplied by the payout ratio for said fiscal period.
On the other hand, in the case where actual NCF is equal to or below projected NCF, CSIF intends to make a cash distribution
for the fiscal period at the amount of actual NCF multiplied by the payout ratio.
Based on the above policy, CSIF determined to make a distribution for the fiscal period under review of ¥832,284,000,
equivalent to 79.1% of projected NCF for the period (¥1,052,089,734). As a result, distribution in excess of earnings is¥420,072,230, after deducting dividends for the period of ¥412,211,770. Dividend per investment unit is ¥3,600 for the fiscal
period under review.
II. Outlook for the Next Fiscal Perioda. Outlook for the Future Management
The Japanese economy is expected to continue recovering moderately. On the other hand, CSIF considers that it is necessary
to watch the trends and changes of overseas economies closely.
With respect to the environment surrounding photovoltaic power generation facilities that are included in renewable energy
power generation facilities, etc., the act for partial revision to the Act on Special Measures Concerning Procurement of Electricity
from Renewable Energy Sources by Electricity Utilities was enforced on April 1, 2017 and the feed-in tariff for renewable energy
was reviewed, which led to a distinction between projects in which industrialization is feasible and projects in which
industrialization is unfeasible. In addition, as described in “I. Overview of the Fiscal Period under Review, b. Investment
Environment” above, the Ministry of Economy, Trade and Industry is currently considering revising the Ordinance for
Enforcement of the Act on Renewable Energy Special Measures in order to review the purchase prices under the feed-in tariff.
It is necessary to watch the impact of this revision carefully. Meanwhile, according to the Ministry of Economy, Trade andIndustry, with respect to the estimates of energy supply and demand in the long term as of July 2015, approximately 64GW is
expected to be introduced in 2030. It is expected that more photovoltaic power generation facilities, etc. will be introduced in the
future.
b. Future Management Policy(i) External Growth Strategy
The Canadian Solar Group (Note 2), which is the Sponsor Group (Note 1) of CSIF, adopts the vertical integration modelthat has developed mainly in the photovoltaic power generation market in Europe and America and applies this model in the
global market, including Japan. CSIF considers that mutual cooperation between the Group and CSIF (engaging in investment
in and management of photovoltaic power generation facilities) through the Sponsor Group based on the vertical integration
model for the construction of the value chain with the aim of creating mutual value should lead to the enhancement of value
for unitholders.
Specifically, CSIF intends to increase assets by utilizing the preferential trading negotiation right granted by the Sponsor
Group and acquiring photovoltaic power generation facilities, etc. whose value is high from the pipelines of the Sponsor. In
addition, CSIF will aim to acquire photovoltaic power generation facilities, etc. held by persons other than the Sponsor Groupby utilizing the Sponsor Group’s networks of brokers and power producers.
(Note 1) The “Sponsor Group” collectively refer to (i) the Sponsor (Canadian Solar Projects K.K.), (ii) special purpose companies (they may behereinafter referred to as “SPCs”), partnerships or other funds with which the Sponsor has entered into the asset management service
agreement, (iii) Canadian Solar O&M Japan K.K. (it may be hereinafter referred to as “CSOM Japan”) and (iv) special purpose companies,- 6 -partnerships or other funds in which the Sponsor or its subsidiary own a majority interest. The same will apply below.
(Note 2) The “Canadian Solar Group” refers to the consolidated corporate group with Canadian Solar Inc. (headquartered in Canada) at the top towhich the Sponsor (Canadian Solar Projects K.K.) belongs.

(ii) Internal Growth Strategy
CSIF will contract out O&M (Note) to CSOM Japan, which is a wholly owned subsidiary of the Sponsor and provides
O&M services in Japan, in principle, for the availability of homogeneous O&M services to the extent that CSIF considers
essential. CSIF aims to thereby reduce the operational risk and operating costs by utilizing the services of CSOM Japan andplacing a blanket order, respectively.
By making the most of the strong operation and management abilities realized by utilizing the global monitoring platformof the Sponsor Group in the early discovery and repair of failures of power generation facilities, CSIF will aim to reduce theloss of power generation. In addition, CSIF will implement the appropriate repair and facilities replacement of assets undermanagement to maintain and enhance the value of assets from the medium- to long-term perspective, thereby securing stablerevenue in the medium to long term.
(Note) “O&M” is an abbreviation of Operation & Maintenance. The same will apply below.

(iii) Financial Strategy
To secure stable revenue and ensure the growth of the managed assets of CSIF, CSIF will consider financing by public
offering, borrowings and other means in the acquisition of new assets, while watching changes in the financing environment
closely.

- 7 -c Forecasts of Management Status
The forecast of management status for the fiscal period ending June 30, 2019 (January 1, 2019 to June 30, 2019), the fiscal
period ending December 31, 2019 (July 1, 2019 to December 31, 2019) and the fiscal period ending June 30, 2020 (January 1,
2020 to June 30, 2020) is as follows. For details of the assumptions underlying the forecast of management status, please refer
to “Assumptions Underlying Forecast of Management Status for Fiscal Period Ending June 30, 2019 (January 1, 2019 to June30, 2019), Fiscal Period Ending December 31, 2019 (July 1, 2019 to December 31, 2019) and Fiscal Period Ending June 30,
2020 (January 1, 2020 to June 30, 2020)” described on or after page 9below.

Operatingrevenues

OperatingincomeOrdinary income

Net income

million yen

million yen

million yen

million yen

yen

yen

yen

2,072

703

573

572

2,478

1,122

3,600

2,154

784

659

658

2,849

751

3,600

2,062

723

602

602

2,605

995

3,600

Fiscalperiodending June2019
Fiscalperiodending Dec.
2019
Fiscalperiodending June
2020
Ⅲ

Distributions
Distributions
per unit
per unit
Distributions in(including(excludingexcess of
distributions
distributions
earnings per unit
in excess ofin excess ofearnings)
earnings)

Facts arising after the settlement of accounts

Not applicable
Assumptions Underlying Forecast of Management Status for Fiscal Period Ending June 30, 2019 (January 1, 2019 to June 30, 2019),
Fiscal Period Ending December 31, 2019 (July 1, 2019 to December 31, 2019) and Fiscal Period Ending June 30, 2020 (January 1,
2020 to June 30, 2020)
Item

Calculation period

Assumptions
・ 4th fiscal period :from January 1, 2019 to June 30, 2019 (181 days)
・ 5th fiscal period: from July 1, 2019 to December 31, 2019 (184 days)
・ 6th fiscal period :from January 1, 2020 to June 30, 2020 (182 days)
・The assumption is that CSIF has 18 photovoltaic power generation facilities, etc. that CSIF had

・

at the end of December 2018 (hereinafter referred to as the “Assets in Possession”).
These forecasts are based on the assumption that there shall have been be no changes in the・

composition of CSIF’s portfolio (acquisition of new projects or sale of acquired projects, etc.)
until the end of the 6th fiscal period, June 30, 2020.
CSIF’s portfolio may change, however, due to changes in the composition of the portfolio other・The lease agreements of the solar energy projects that CSIF intends to acquire will become

Portfolio

than the assumed acquisition of projects as outlined above.

Operating revenues

effective as of the acquisition date. CSIF’s leasing structure for its solar energy projects will becomprised of basic rent and variable rent. Revenue forecasts for the 4th, 5th and 6th fiscal
periods are ¥2,072 million, ¥2,154 million and ¥2,062 million, respectively.
a) Basic rent for each solar energy project that CSIF intends to acquire is calculated asfollows:
Monthly projected energy output (P50) x (100-Y)% x 70% x FIT purchase price
Monthly projected energy output (P50) refers to such figure disclosed in the technical reports(an evaluation report of the system, the capacity, the relevant contracts attached andcontinuity (performance degradation and environmental evaluation)of the solar energy
facility) that the Asset Manager received from E&E Solutions Inc. with respect to each solar- 8 -energy project. Monthly projected energy output (P50) *¹x (100-Y)% *²represents the amountafter deduction of fees CSIF pays to the operators and fees regarding management of thelessee. Such amount will vary for each anticipated acquisition.
b) Variable rent for each solar energy project that CSIF intends to acquire is calculated asfollows:
Monthly actual energy output x (100-Y)% x FIT purchase price) – basic rent
Any amount that exceeds the basic rent after multiplying a certain rate of (100-Y)% to themonthly actual energy output for each solar energy project by FIT purchase price will be
captured as a performance-related variable rent. In any case, if the calculation of the variable
rent is a negative number, it shall be deemed to be zero.
(*Note 1) Projected energy output (P50) represents the output that is viewed to be achievable with a 50% probabilityby the third-party providers of the technical reports and other experts.
(*Note 2) Y represents the value for management costs of the lessees and operator remuneration fees. The value ofY will vary for each anticipated acquisition.

・Forecasted figures herein have been based on a projected energy output (P50) and are not・

guaranteed nor do they reflect the actual energy output, which will vary depending on the levelof solar irradiation.
CSIF has assumed no cancellations of the lease agreements or delinquencies or non-payment of・

rents by tenants.
CSIF has assumed that the current lease agreements will be renewed on equal terms under these
agreements.

・Of the main operating expenses for the lease of the acquired assets, operating expenses for the

Assets in Possession other than depreciation costs have been accounted for based on past figuresand estimates from subcontractors, etc., taking variables into account. Such costs for the 4th,
5th and 6th fiscal periods are assumed to be ¥561 million, ¥562 million and ¥530 million,
respectively.
・ Of the expenses for the lease of the Assets in Possession, property-related taxes are estimated at

・¥3 million for the fiscal periods ending June 30, 2019, December 31, 2019 and June 30, 2020,
respectively.
Periodic payment of repair and maintenance costs based on the figures provided in the technical・

reports and the Asset Manager's estimate have been taken into account. However, these figures
are subject to revisions as the actual figures can vary significantly depending on the operating
period and are paid in irregular intervals, in addition to any instances where unexpected repairs
are required.
CSIF expects to pay ¥140 million, ¥138 million and ¥137 million for the 4th fiscal period, the・

5th fiscal period and the 6th fiscal period, respectively, as O&M fees.
CSIF has assumed that it will incur expenses related to the land lease of the Assets in Possession

・in the amount of ¥30 million for the fiscal periods ending June 30, 2019, December 31, 2019
and June 30, 2020 (the 4th, 5th and 6th fiscal periods), respectively.
CSIF has assumed that it will incur depreciation expenses, including certain ancillary expenses

Operating expensesof ¥807 million, ¥807 million and ¥807 million for the 4th, 5th and 6th fiscal periods,
respectively. These figures are calculated using the straight-line method.
・
Non-operating expenses¥124 million and ¥120 million for the 4th, 5th and 6th fiscal periods, respectively.
・

Borrowings

CSIF has also assumed interest expenses and other borrowing-related expenses of ¥129 million,
As of today’s date, the balance of borrowings of CSIF is ¥24,297 million. CSIF assumes that it

will repay such borrowings in amounts of ¥612 million, ¥622 million and ¥1,471 million at theend of June 2019, December 2019 and June 2020, respectively, under the agreement.
・ CSIF estimates that the LTV (loan-to-value) ratio will be approximately 52.3%, 52.0% and・

49.6% as of the end of the 4th, 5th and 6th fiscal periods, respectively.
CSIF calculates LTV using the following formula.
LTV = Total interest-bearing debt / Total assets × 100

- 9 -

Item

Number of investment units

Distributions per unit
(excluding distributions inexcess of earnings)

Assumptions
・The assumption that CSIF uses is the total number of investment units issued and outstanding・

as of the date of this document, which is 231,190 units. CSIF has assumed that there will be nochange in the number of units issued and outstanding resulting from the issuance of additional
investment units, etc. until the end of the 6th fiscal period ending June 30, 2020.
Distributions per unit (excluding distributions in excess of earnings), distributions in excess of・earnings per unit and distributions per unit (including distributions in excess of earnings) havebeen calculated based on the assumption that the number of units issued and outstanding as ofthe end of each fiscal period will be 231,190 units.
Distributions per unit (excluding distributions in excess of earnings) are calculated based on the・cash distribution policy prescribed in CSIF’s Articles of Incorporation.
Changes in lessees, fluctuations in rental revenues due to changes in lease agreements,・

fluctuations in energy output, unforeseeable repair and maintenance expenses incurred and otherfactors may lead to changes in the amount of distributions per unit (excluding distributions inexcess of earnings).
Distributions in excess of earnings per unit will be generally based on the cash distribution

policy prescribed in CSIF’s Articles of Incorporation and the Asset Manager’s asset
management guideline.
・ CSIF intends to make cash distributions to its unitholders for each fiscal period using cash flow

・

generated by the renewable energy projects (the “Free Cash Flow”*1). The amount available
for distribution shall be calculated by multiplying FCF less any amount payable to debt investors(the “Net Cash Flow,”*2 which shall belong to the equity investors; in the calculation of NCF,
the total amount of NCF remaining after deducting distributions for the preceding fiscal periods
is to be taken into account) by the applicable payout ratio, which will be determined by CSIF at
its discretion for each fiscal period. Further, CSIF intends to make distributions in excess ofearnings for each fiscal period in order to realize this policy.
With respect to distributions per unit (including distributions in excess of earnings) for the fiscal

・

periods ending June 30, 2019, December 31, 2019 and June 30, 2020 (the 4th/5th/6th fiscal
periods), CSIF intends to stably maintain the level of about ¥3,600. And the amount of
distributions in excess of earnings which CSIF plans to pay is ¥1,122 for the 4th fiscal period
ending June 30, 2019, ¥751 for the 5th fiscal period ending December 31, 2019 and ¥995 forthe 6th fiscal period ending June 30, 2020. This amount, including distributions in excess ofearnings, is calculated by multiplying the forecast NCF for the relevant fiscal period (which is
calculated at the beginning of the relevant fiscal period) by a certain ratio, as described above.
The ratio is determined at the beginning of each fiscal period, considering the forecast NCF forthe relevant fiscal period. The ratio used for the 4th fiscal period ending June 30, 2019 is 48.0%.
CSIF may not make cash distributions (refunds of investment) in excess of earnings upon・

consideration of other options, such as repair and capital expenditure, repayment of loans,appropriation to funds for the acquisition of new properties, and the acquisition of treasury
investment units, by comprehensively considering the economic environment, the market
environment relating to the renewable energy power generation projects, the financial positionsof CSIF and other circumstances.
In this regard, cash distributions in excess of earnings (refunds of investment) involve a decrease

Distributions in excess ofearnings per unit

in funds on hand, and thus if capital expenditure beyond the expectations of CSIF is required
due to any sudden events or other causes, there is a possibility of a shortage of funds on hand or
a restriction on the flexible acquisition of properties in terms of funds. In addition, in the caseof a cash distribution (refund of investment) in excess of earnings, the amount of such
distribution will be deducted from the total amount of funds contributed or the contribution
surplus.
(*Note 1) Free Cash Flow (FCF): Rent revenues minus expenses related to rent business and capital expenditures
related to assets. Expenses related to rent business include all cash expenses related to operation, including
payment of asset management fees and administrative service fees, but exclude interest payments related tointerest-bearing debt or other financing-related expenses.
(*Note 2) Net cash flow (NCF): Free Cash Flow minus interest payments related to interest-bearing debt andrepayments of interest-bearing debt for the relevant fiscal period plus the total amount of NCF remaining after10

deducting distributions for the preceding fiscal periods.

・

CSIF has assumed that no revisions that will impact the above projections will be made to laws

・and regulations, tax systems, accounting standards, securities listing regulations and the rules of
The Investment Trusts Association, Japan, among others.
CSIF has assumed that no unforeseeable significant changes will occur in general economic

Otherstrends or conditions in the solar energy facility market and the real estate market.
(3) Risk of Investment
Disclosure is omitted because there have been no significant changes from the description in the latest securities report(submitted on September 26, 2018 including subsequent amendments.).

11

３．Financial Statement（１）Balance Sheet（Unit：thousand yen）
nd Period

2（June 30, 2018）
AssetsCurrent Assets
Cash and bank deposit
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other current assets
Total current assets
Fixed Assets
Property and equipment
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment ,net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property and equipment
Intangible assets
Leasehold rights
SoftwareTotal intangible assets
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Long term deposits
Guarantee deposits
Total investment and other assets
Total fixed assets
Liabilities
Current liabilities
Operating Accounts payable
Current portion of long-term loans payable
Accounts payable - otherAccrued expenses
Income taxes payable
Deposits received
Total current liabilities
Liabilities
Non-current liabilities
Long-term loan payable
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unit holders’ capital
Deduction from unitholders’ capital
Unitholders’ capital (net value)
Surplus
Unappropriated retained earnings(Accumulated deficit)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

12

3rd Period(December 31,2018)

2,031,379
318,430
44,262
2,109,820
4,503,892

3,222,807
208,913
107,714793,148685
4,333,268

517,918（13,928）
503,989
26,507,191
716,996)
25,790,195
462,505
12,285)450,219
3,876,554
1,944
30,622,903

797,621
28,399)769,22137,427,871
1,405,797)
36,022,074
505,287
22,181)
483,106
4,309,021
6,244
41,589,667

489,601
3,120
492,721494,487
2,763
497,250

200,702
27
21,021
221,750
31,337,376
35,841,269

324,500
12
7,800
21,021
353,333
42,440,252
46,773,521

18,2162,883,702
42,47077,8981,465
1,331
3,025,086

25,2901,239,176
56,31773,449857
5,246
1,400,337

15,219,585
15,219,585
18,244,671

23,057,919
23,057,919
24,458,257

17,315,550
17,315,550

22,050,175(147,209)
21,902,965

281,047

412,298

281,047
17,596,597
17,596,597
35,841,269

412,298
22,315,263
22,315,263
46,773,521

（２）Statement of Income(Unit: thousand yen)
2nd period

3rd period(from July 1, 2018
to December 31, 2018)(from October 1, 2017
to June 30, 2018)
Operating revenues
Rental revenues of renewable energy power generation
facilities, etc.
Total operating revenues
Operating expenses
Rental expenses of renewable energy power generation
facilities, etc.
Asset management fee
Administrative service fees
Director’s compensation
Taxes and duties
Other operating expenses
Total operating expenses
Operating income or loss
Non-operating incomesInterest income
Insurance income
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing-related expenses
Organization expenses
Investment unit issuance expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Income tax - deferred
Total income taxes
Net income
Retained earnings (deficit) brought forward
Unappropriated retained earnings (Accumulated deficit)- 13 -

2,023,037

1,785,374

2,023,037

1,785,374

1,066,206

1,035,958

30,595
7,350
3,600
3,596
66,672
1,178,021
845,015

43,934
17,0662,400
1,346
39,9281,140,634
644,73912
12

17
18,815
1,942
20,77594,496207,160
13,130198,350
513,137
331,890
331,890
1,467
27)
1,440
330,449
49,402)
281,047

97,912
103,408
51,132
252,452
413,062
413,062860
14874
412,187110412,298

（３）【Statements of Changes in Unitholders’ Equity】
2nd Fiscal Period (From October 1, 2017 to June 30, 2018)(Unit: thousand yen)
Unitholders’ equity
Surplus
Unitholders’ capital

Capital surplus
or loss

Total unitholders’equityTotal surplus

Total net assets

150,000

49,402)

49,402)

100,597

100,597

17,165,550--

17,165,550

17,165,550

Distribution in excess ofearnings

-

-

-

-

-

Dividend of surplus

-

-

-

-

-

Net Income-

330,449

330,449

330,449

330,449

Total changes of items during
the period

17,165,550

330,449

330,449

17,495,999

17,495,999

Balance as of June 30, 2018

17,315,550

281,047

281,047

17,596,597

17,596,597

Balance as of October 1, 2017
Changes of items during theperiodIssuance of new investment
unit

3rd Fiscal Period (From July 1, 2018 to December 31, 2018)（Unit: thousand yen）
Unitholders’ equity
Unitholders’ capital

Surplus

Total net
assetsTotal surplus

Totalunitholders’equity281,047

281,047

17,596,597

17,596,597

4,734,625--

4,734,625

4,734,625

147,209)147,209)--147,209)147,209)---

280,936)

280,936)

280,936)

280,936)---

412,187

412,187

412,187

412,187

Total changes of items
during the period

4,734,625

147,209)

4,587,415

131,250

131,250

4,718,666

4,718,666

Balance as of December
31, 2018

22,050,175

147,209)21,902,965

412,298

412,298

22,315,263

22,315,263

Unitholders’capitalDeduction
fromunitholders’capitalUnitholders’capital(net)17,315,550-

17,315,550

4,734,625-

Distribution in excessof earnings-

Dividend of surplus
Net Income

Balance as of July 1,
2018

Capitalsurplus or
loss

Changes of items during
the period
Issuance of new
investment unit

- 14 -

（４）Statements of Cash Distribution
Fiscal Period under Review(From October 1, 2017
to June 30, 2018)
281,047,367

I Unappropriated retained earnings(accumulated deficit)
II Distributions in excess of retained earnings
Deduction from unitholders’ capital
III Cash distributions(Cash distributions per unit)
Profit distributions(Profit distributions per unit)
Distributions in excess of retained
earnings(Distributions in excess of retained
earnings)
IV. Retained earnings (deficit) carried forward
Calculation method for cash distributions

147,209,520

420,072,230

428,146,500(2,350)280,936,980(1,542)
147,209,520

832,284,000(3,600)412,211,770(1,783)420,072,230(808)
110,387(1,817)86,441

In accordance with Articles 47,
In accordance with Articles 47,
Paragraph 1 of Canadian Solar
Paragraph 1 of Canadian Solar
Infrastructure Fund, Inc. (“CSIF’) s
Infrastructure Fund, Inc. (“CSIF’) s
Articles of Incorporation, the amount of Articles of Incorporation, the amount ofcash distributions shall be the amount of cash distributions shall be the amount of
profit in excess of an amount equivalent profit in excess of an amount equivalent
to 90% of distributable profits, as
to 90% of distributable profits, as
stipulated in Article 67-15 of the Act on stipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation. Special Measures Concerning Taxation.
Based on this policy, CSIF decided toBased on this policy, CSIF decided tomake distributions of ¥280,936,980
make distributions of ¥412,211,770
which is the entire amount equivalent to which is the entire amount equivalent tothe unappropriated retained earnings for the unappropriated retained earnings forthe fiscal period under review ofthe fiscal period under review of¥281,047,367 excluding fractions of the ¥412,298,211 excluding fractions of the
distribution per unit that are less than ¥1. distribution per unit that are less than ¥1.
CSIF distributes cash in excess of
CSIF distributes cash in excess ofretained earnings every fiscal period
retained earnings every fiscal period
based on the cash distribution policy
based on the cash distribution policy
prescribed in Article 47, Paragraph 2 of prescribed in Article 47, Paragraph 2 of
CSIF’s Articles of Incorporation. Based CSIF’s Articles of Incorporation. Basedon this policy, CSIF decided to make cashon this policy, CSIF decided to make
distributions in excess of earnings (return
cash distributions in excess of earningsof capital categorized as a distribution of(return of capital categorized as a
distribution of the reduction in capital for the reduction in capital for Japanese tax
Japanese tax purposes) in the amount of purposes) in the amount of ¥420,072,230¥147,209,520 which is equivalent towhich is equivalent to 58.9% of the
19.8% of the amount of depreciation
amount of depreciation expenses
expenses recorded for the fiscal period
recorded for the fiscal period under
under review of ¥743,653,467.
review of ¥713,524,700.
Accordingly, the distribution per unit
Accordingly, the distribution per unit isis ¥3,600.

¥2,350.
(Note)

Fiscal Period under Review(From July 1, 2018
to December 31, 2018)
Unit: Yen
412,298,211

Distributions in excess of retained earnings per unit will generally be based on the cash distribution policy prescribed in
CSIF’s Articles of Incorporation and the Asset Manager’s asset management guideline.
CSIF intends to make cash distributions of NCF within the FCF generated from the renewable energy power generation
facilities. The amount available for distribution shall be calculated by multiplying NCF by the payout ratio.
- 15 -

Further, CSIF intends to make distributions in excess of retained earnings for each fiscal period in order to realize suchpolicy.
CSIF’s forecasts (including revised forecasts) for each fiscal period are based on the assumption of the Forecast Power
Generation (P50) provided in the independent technical report which is used as a basis for calculating rents for renewableenergy power generation facilities and if actual NCF calculated based on actual power generation during the applicablefiscal period exceeds forecast NCF, CSIF’s policy is to set “forecast NCF multiplied by the payout ratio” as the upper limitof the amount of cash distributions for the applicable fiscal period.
.
On the other hand, if actual NCF is less than forecast NCF, CSIF’s policy is to set “actual NCF multiplied by the payout
ratio” as the amount of cash distributions for the applicable fiscal period.
Based on this policy, CSIF decided to make distributions for the current fiscal period of ¥428,146,500 which is equivalent
to 45.9% of forecast NCF amount for the fiscal period under review of ¥932,781,045. Of this, ¥147,209,520 which is theamount less of distributions of profit of ¥280,936,980 is distributions in excess of retained earnings.
Based on this policy, CSIF decided to make distributions for the current fiscal period of ¥832,284,000 which is equivalent
to 79.1% of forecast NCF amount for the fiscal period under review of ¥1,052,089,734. Of this, ¥420,072,230 which is theamount less of distributions of profit of ¥412,211,770 is distributions in excess of retained earnings.

- 16 -

（５）Statement of Cash Flow
2nd period(From October 1, 2017
to June 30, 2018)
Cash flows from operating activities
Income (Loss) before income taxes
Depreciation cost
Investment unit issuance expenses
Organization expenses
Interest income
Interest expenses
Decrease (Increase) in operating accounts receivable
Decrease (Increase) in consumption taxes receivable
Decrease (Increase) in prepaid expenses
Decrease (Increase) in long-term prepaid expenses
Increase (Decrease) in operating accounts payable
Increase (Decrease) in accounts payable - other
Increase (Decrease) in accrued expenses
Other, net
Sub-totalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payment for long term deposit
Purchases of property and equipment
Purchases of intangible fixed assets
Payment for guarantee deposit
Payments for organization expenses
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment units
Payments for investment unit issuance expenses
Dividends paid
Surplus earning distribution paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the fiscal
periodCash and cash equivalents at the end of the fiscal period- 17 -（unit: thousand yen）
3rd period(From July 1, 2018
to December 31, 2018)

331,890743,653
198,350
13,13012)
94,496
318,430)
2,109,820)
43,544)
200,702)
18,216
41,98977,131
1,395
1,152,256)
12
93,728)98)
1,246,071)

413,062
713,524
51,132
17)
97,912
109,517
1,316,672
92,669)94,581)
7,073
13,846
6,021)
3,228
2,532,681
17
96,340)1,468)
2,434,890

31,365,358)
493,165)
11,021)
13,130)31,882,674)

7,800)
11,679,932)
4,885)
11,692,617)

18,640,000
536,711)
17,165,550
198,350)
35,070,488
1,941,741

8,850,000
2,656,191)
4,734,625
51,132)
280,936)
147,209)
10,449,154
1,191,427

89,6372,031,379

2,031,379

3,222,807

(6)NOTES ON GOING CONCERN PREMISE
Not applicable.
(7) [SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES]
1.Method of depreciation andamortization of non-current assets

2.Standards for revenue and expense
recognition(1) Property and equipment
The straight-line method is adopted. In addition, the useful lives of major property andequipment are as shown below:
Structures .......................................... 22 - 25 years
Machinery and equipment ................. 22 - 25 years
Tools, furniture and fixtures .............. 22 - 25 years(2) Intangible assets
The straight-line method is adopted. In addition, the useful life is as shown below:
Software ............................................ 5 years(3) Long-term prepaid expenses
The straight-line method is adopted.
Accounting for fixed assets tax
With respect to fixed assets tax, city planning tax and depreciable assets tax, among
other taxes, on the infrastructure assets held, of the tax amount assessed and determined,
the amount corresponding to the calculation period is accounted as rental expenses. In
addition, reimbursement such as fixed assets tax, which is paid to the seller and otherpersons on the acquisition of infrastructure assets and other assets (“the amount equivalent
to the fixed assets taxes and other taxes”) is not recognized as rental expenses but includedin the acquisition cost of the concerned infrastructure assets and other assets. In the fiscal
period under review, the amount equivalent to the fixed assets tax and other taxes includedin the acquisition cost of infrastructure assets and other assets is 27,047 thousand yen.

3.Scope of funds in statement of cash
flows

4.Method of hedge accounting

5.Other significant matters serving as
the basis for preparation of financial
statements

Funds (cash and cash equivalents) in statement of cash flows consist of cash on hand,demand deposits and short-term investments with a maturity of three months or less at thedate of acquisition that can readily be converted into cash and that are subject toinsignificant risks of changes in value.
(1) Method of hedge accounting
Special treatment is adopted for the interest rate swap that meets the requirements for
special treatment.
(2) Hedging instruments and hedged items:･Hedging instruments……Interest rate swap transaction･Hedged items….Interest rate on loans(3) Policy for hedging
CSIF conducts derivative transactions to hedge risks as set forth in the CSIF’s Articles ofIncorporation according to the rules for risk management.
(4) Method of evaluation of effectiveness of hedging
The interest rate swap meets the requirements for special treatment, and thus theevaluation of effectiveness is omitted.
Accounting for Consumption tax
Consumption tax and local consumption tax are excluded from the correspondingtransaction amount.

(8) Notes regarding change of presentation method]“Change due to application of Partial Amendments to Accounting Standard for Tax Effect Accounting”
Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28 of February 16, 2018) wereapplied from the beginning of the fiscal period under review. Accordingly, the presentation method was changed and deferred
tax assets are presented in investments and other assets, and deferred tax liabilities are presented in non-current liabilities.
As a result, the “deferred tax assets” of 27 thousand yen shown in “current assets” on the balance sheet of the previous fiscal
period are presented in “deferred tax assets” under “investments and other assets” in this document.
- 18 -

(9) Notes regarding financial statements[NOTES TO BALANCE SHEET]*1 Minimum net assets stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations(Unit: thousand yen)
As ofDecember 31,2018

As ofJune 30,2018
50,00050,000[NOTES TO STATEMENT OF INCOME ]*1 Breakdown of profits and losses from the rental business of renewable energy power
generation facilities, etc.
(Unit: thousand yen)
From October 1, 2017 toJune 30, 2018

From July 1, 2017 to
December 31, 2018

A. Operating revenue from the rental business of renewable energy power generation facilities, etc.
Rental revenue of renewable energy power generation
facilities, etc.
(Basic rent)(Variable rent linked to actual output)(Incidental income)
Total operating revenue from the rental business ofrenewable energy power generation facilities, etc.

1,370,356

1,322,669

652,674

462,5786

127

2,023,037

1,785,374

B. Operating expenses from the rental business of renewable energy power generation facilities, etc.
Rental expenses of renewable energy power generation
facilities, etc.
(Management entrustment expenses)

133,827

127,128-

2,055(Taxes and duties )154,281

154,262(Utilities expenses)--(Insurance expenses)

11,632

12,900(Depreciation expenses)

743,210713,168(Land rent)

23,253

26,444--

Total operating expenses from the rental business ofrenewable energy power generation facilities, etc.

1,066,206

1,035,958

C. Profits and losses from the rental business of renewable energy
power generation facilities, etc. （A-B）

956,830

749,416(Repair and maintenance costs)(Other rental expenses)[NOTES TO STATEMENT OF CHANGES IN NET ASSETS]*1 Total number of authorized investment units and the total number of investment units issued and outstanding
From October 1, 2017 toJune 30, 2018- 19 -

From July 1, 2017 to
December 31, 2018

Total number of authorized investment units

10,000,000 unit

10,000,000 unit

182,190 unit

231,190 unit

Total number of investment units issued andoutstanding[NOTES TO STATEMENT OF CASH FLOWS]*1 Relationship between the ending balance of cash and cash equivalents and the amounts on the balance sheet(Unit: thousand yen)
From October 1, 2017 toJune 30, 2018

From July 1, 2017 to
December 31, 2018

Cash and deposits

2,031,379

3,222,807

Cash and cash equivalents

2,031,379

3,222,807[NOTES ON LEASE TRANSACTIONS]
Operating lease (as the lessor)
Future minimum lease payments(Unit: thousand yen)
Fiscal period ended

Fiscal period ended

June 30, 2018

December 31, 2018

Within one year

2,176,829

2,957,963

Longer than one year

36,039,821

48,222,398

Total

38,216,650

51,180,362[NOTES ON FINANCIAL INSTRUMENTS]
1.Situation of financial instruments(1) Policy for financial instruments
CSIF procures funds for acquiring new assets or repaying loans through loans from financial institutions or issuing investment
units. The basic policy is to build stable and sound financial operations to maintain and increase earnings in the medium to longterm and grow the size and value of assets.
(2) Details of the financial instruments and their risks and the risk management system
Long-term loans payables are one of the means to procure the funds for the acquisition of managed assets and are exposed
to interest rate fluctuation risk and liquidity risk, among other risks. However, this risk is deducted through the appropriatebalancing of the loan period and the interest rate type, and diversification of lenders, and the appropriate management ofvarious types of indexes, especially the general application of the upper limit of the ratio of interest-bearing, which is 60%.
(3) Supplementary explanation on fair value of financial instruments
The fair values of financial instruments are values based on market prices, or if there are no market prices, values arereasonably calculated. Since certain assumptions are used for the calculation of fair values, they may change if different
assumptions are used.

- 20 -

2. Matters relating to fair values of financial instruments
The table below shows the book value and fair values of financial instruments as of June 30, 2018, and the difference
between them. Financial instruments whose fair values are extremely difficult to estimate are not included in the table.
(Unit: thousand yen)Book value(1) Cash and deposits

Fair value

Difference

2,031,379

2,031,379-

318,430

318,430-

Total assets

2,349,809

2,349,809-(3) Current portion of long-term loans
payable2,883,702

2,882,035

1,667)(4) Long-term loans payable

15,219,585

15,358,035

138,450

Total liabilities

18,103,288

18,240,071

136,783(5) Derivative transaction

-

-

-

(2) Operating accounts receivable(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivative transactions
Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate their book value.
Therefore, the book values are used as the values.
Liabilities(3) Current portion of long-term loans payable (4) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed every certain
period is applied to loans, and thus the market value is considered to be close to the book value. Accordingly, the book value
is used. In addition, for the long-term loans payable at variable interest rates subject to the special treatment of interest rate
swap (refer to the “Notes on derivative transactions” below), the fair value is measured by discounting the total sum of theprincipal and interest treated together with the said interest rate swap as one at the interest rate that is applied when the similarloan is obtained and that is reasonably estimated.
(5) Derivative transaction
Please refer to the “Notes on derivative transactions” below.
The table below shows the book value and fair values of financial instruments as of December 31, 2018, and the difference
between them. Financial instruments whose fair values are extremely difficult to estimate are not included in the table.
(Unit: thousand yen)Book value(1) Cash and deposits

Fair value

Difference

3,222,807

3,222,807-

208,913208,913

-

7,800

7,800

-

Total assets

3,439,520

3,439,520-(4) Current portion of long-term loans
payable1,239,176

1,241,069

1,892(5) Long-term loans payable

23,057,919

23,391,454

333,534

Total liabilities

24,297,096

24,632,523

335,427(6) Derivative transaction

-

-

-

(2) Operating accounts receivable(3) Long term deposit(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivative transactions
Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate their book value.
Therefore, the book values are used as the values.
- 21 -

(3) Long-term deposits
These financial instruments are time deposits, and their fair values are deemed to be close to their book value as there is no
significant variance between the deposit and the contracted interest rates that are assumed upon a new cash deposit. Therefore,
the book values are used as the values.
Liabilities(4) Current portion of long-term loans payable (5) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed every certain
period is applied to loans, and thus the market value is considered to be close to the book value. Accordingly, the book value
is used. In addition, for the long-term loans payable at variable interest rates subject to the special treatment of interest rate
swap (refer to the “Notes on derivative transactions” below), the fair value is measured by discounting the total sum of theprincipal and interest treated together with the said interest rate swap as one at the interest rate that is applied when the similarloan is obtained and that is reasonably estimated.
(6) Derivative transaction
Please refer to the “Notes on derivative transactions” below.

(Note 2) Scheduled redemption amounts of monetary receivables after the closing date (June 30, 2018)

Within one
year(1) Cash and deposits(Unit: thousand yen)
Longer than Longer than Longer than Longer than
one year,
two years, three years, four years, Longer than
within two within three within four within five
five years
years
years
years
years

2,031,379

-

-

-

-

-

(2) Operating accounts receivable

318,430

-

-

-

-

-

Total

2,349,809

-

-

-

-

-

Scheduled redemption amounts of monetary receivables after the closing date (December 31, 2018)(Unit: thousand yen)
Longer than Longer than Longer than Longer thanWithin one
one year,
two years, three years, four years, Longer thanyear
within two within three within four within five
five years
years
years
years
years
(1) Cash and deposits(2) Operating accounts receivable(3) Long-term deposits
Total

3,222,807

-

-

-

-

-

208,913

-

-

-

-

-

-

7,800

-

-

-

-

3,439,520

-

-

-

-

-

(Note 3) Scheduled redemption amount of loans payables after the closing dateWithin one
year(4) Current portion of long-termloans payable(5) Long-term loans payable
合計(June 30, 2018)(Unit: thousand yen)
Longer than Longer than Longer than Longer than
two years, three years, four years, Longer than
one year,five years
within two within three within four within five
years
years
years
years

2,883,702

-

-

-

-

-

-

845,487

1,600,846

838,811855,747

11,078,692

2,883,702

845,487

1,600,846

838,811855,747

11,078,692

Scheduled redemption amount of loans payables after the closing dateWithin one
year(3) Current portion of long-termloans payable(4) Long-term loans payable
Total(December 31, 2018)(Unit: thousand yen)
Longer than Longer than Longer than Longer than
one year,
two years, three years, four years, Longer than
within two within three within four within five
five years
years
years
years
years

1,239,176

-

-

-

-

-

-

2,122,610

1,995,867

1,275,305

1,292,889

16,371,247

1,239,176

2,122,610

1,995,867

1,275,305

1,292,889

16,371,247- 22 -

[NOTES ON SECURITIES]
Prior fiscal period (as of June 30, 2018)
Not applicable.
Current fiscal period (as of December 31, 2018)
Not applicable.
[NOTES ON DERIVATIVE TRANSACTIONS]
1. Those to which hedge accounting is not applied
Prior fiscal period (as of June 30, 2018) and current fiscal period (as of December 31, 2018)
Not applicable.
2. Those to which hedge accounting is applied
Prior fiscal period (as of June 30, 2018)(Unit: thousand yen)
Method ofhedge
accounting

Type of derivativetransactions and othermatters

Major
items
hedgedSpecialtreatment ofinterest rate
swap

Interest rate swap
transaction
Fixed
payment/variable
receipt

LongtermloanspayableLonger than one
year

Fair value

Method ofcalculation ofsaid market
value

14,399,405（Note）-

Contract amount and other amounts

15,195,201(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portion of long-termloans payable and the long-term loans payable to be hedged as one, and thus their fair value is presented together with the fairvalue of (Note 1) (3) Current portion of long-term loans payable and (4) Long-term loans payable in “Notes on financial
instruments 2.Matters relating to fair values of financial instruments, among other matters” .
Current fiscal period (as of December 31, 2018)(Unit: thousand yen)
Method ofhedge
accounting

Type of derivativetransactions and othermatters

Major
items
hedgedSpecialtreatment ofinterest rate
swap

Interest rate swap
transaction
Fixed
payment/variable
receipt

LongtermloanspayableLonger than one
year

Fair value

Method ofcalculation ofsaid market
value

21,411,430（Note）-

Contract amount and other amounts

22,603,027(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portion of long-termloans payable and the long-term loans payable to be hedged as one, and thus their fair value is presented together with the fairvalue of (Note 1) (4) Current portion of long-term loans payable and (5) Long-term loans payable in “Notes on financial
instruments 2.Matters relating to fair values of financial instruments, among other matters”[NOTES ON RETIREMENT BENEFITS]
Prior fiscal period (as of June 30, 2018)
Not applicable.
Current fiscal period (as of December 31, 2018)
Not applicable.

- 23 -

[NOTES ON TAX EFFECT ACCOUNTING]
1. Breakdown of deferred tax assets and deferred tax liabilities by major cause(Unit: thousand yen)
Fiscal period ended
June 30, 2018

Fiscal period ended
December 31, 2018

Accrued business tax not deductible from taxable
income27

12Total deferred tax assets

27

12

Net amount of deferred tax assets

27

12

2. Breakdown of each major item that causes a significant difference between the effective statutory tax rate and the rate of
the burden of corporate tax and other taxes after the application of tax effect accounting
Fiscal period ended
June 30, 2018
Effective statutory tax rate

Fiscal period ended
December 31, 201831.74%

31.51%

Dividends paid deductible for tax purpose

26.87)%

31.45)%

Loss carried forward and deducted for the period

4.72)%-

Others

0.28%

0.15%

Rate of burden of corporate tax and other taxes after
the application of tax effect accounting

0.43%

0.21%

(Adjustment)[NOTES ON SHARE OF PROFIT (LOSS) OF ENTITIES ACCOUNTED FOR USING EQUITY METHOD, ETC.]
Prior fiscal period (as of June 30, 2018)
Not applicable.
Current fiscal period (as of December 31, 2018)
Not applicable.
[NOTES ON RELATED PARTY TRANSACTIONS]
Prior fiscal period (from October 1, 2017 to June 30, 2018)
Not applicable.
Current fiscal period (from July 1, 2018 to December 31, 2018)
Not applicable.
[NOTES ON ASSET RETIREMENT OBLIGATIONS]
Prior fiscal period (from October 1, 2017 to June 30, 2018)
Not applicable.
Current fiscal period (from July 1, 2018 to December 31, 2018)
Not applicable.

- 24 -

[NOTES ON INVESTMENT AND RENTAL PROPERTY]CSIF has renewable energy power generation facilities, etc. The book value, change during the period and fair value at theend of the period are as shown below.
(Unit: thousand yen)
Fiscal period ended
June 30, 2018

Fiscal period ended
December 31, 2018

Book value (Note 2)-

31,110,561

Change during the period(Note 3)

31,110,561

10,967,348

Ending balance

31,110,561

42,077,910

Fair value at the end of theperiod (Note 4)

35,963,000

47,099,500

Beginning balance(Note 1) The real estate that CSIF holds is real estate to be provided for the use of renewable energy power generation facilities, and thus with respect to thebook value and the fair value, the amount of the renewable energy power generation facilities and real estate are stated together as one.
(Note 2) The book value is the amount at acquisition cost less the accumulated depreciation.
(Note 3) The change during the period ended June 30,2018 primarily consisted of the increase due to acquisition of fifteen photovoltaic power generation
facilities (31,853,772 thousand yen), and the decrease due to depreciation expenses (743,210 thousand yen).And the change during the period ended
December 31,2018 primarily consisted of the increase due to acquisition of three photovoltaic power generation facilities (11,651,820 thousand yen),and the decrease due to depreciation expenses (713,168 thousand yen).
(Note 4) The fair value is the total sum of the intermediate values according to Article 41, paragraph 1 of the CSIF's Articles of Incorporation on the basis of
the appraised value in the range stated in the valuation report with the date of the value opinion on June 30,2018 and December 31, 2018, which was
obtained from PricewaterhouseCoopers Sustainability LLC.

In addition, profits and losses from the renewable energy power generation facilities, etc. for the fiscal period ended June 30,2018 (the 2nd period) and the fiscal period ended December 31, 2018 (the 3rd period) are as stated in the “Notes to statement ofincome” above.
[NOTES ON SEGMENT INFORMATION]
1.Segment information

Since CSIF has a single segment of the rental business of infrastructure assets, the segment information is omitted.
2.Related Information
Prior fiscal period (from October 1, 2017 to June 30, 2018)(1) Information on products and services
Information is omitted because operating revenue from a single product/service to outside customers exceeds 90% of
the operating revenue on the statement of income.
(2) Information on regions① Operating revenue
Information is omitted because operating revenue from outside customers in Japan exceeds 90% of the operating revenue
on the statement of income.
② Property and equipment
Information is omitted because the amount of property and equipment located in Japan exceeds 90% of the amount ofproperty and equipment on the balance sheet.

- 25 -

（３）Information on major customers（unit: thousand yen）
Name of customer

Total net revenue

Name of related segment

1,976,071

Renewable energy power generation
facilities, etc. rental business

CLEAN GUADALQUIVIR K.K.

11,895

Renewable energy power generation
facilities, etc. rental business

Univergy 12 G.K.

35,064

Renewable energy power generation
facilities, etc. rental businessTida Power 01 G.K.

Current fiscal period (from July 1, 2018 to December 31, 2018)(1) Information on products and services
Information is omitted because operating revenue from a single product/service to outside customers exceeds 90%of the operating revenue on the statement of income.
(2) Information on regions① Operating revenue
Information is omitted because operating revenue from outside customers in Japan exceeds 90% of the operating
revenue on the statement of income.
② Property and equipment
Information is omitted because the amount of property and equipment located in Japan exceeds 90% of the amountof property and equipment on the balance sheet.
（３）Information on major customers（unit: thousand yen）
Name of customer

Total net revenue

Name of related segment

Tida Power 01 G.K.

1,529,305

Renewable energy power generation
facilities, etc. rental business

Univergy 23 G.K.

10,868Renewable energy power generation
facilities, etc. rental business

CLEAN ENERGIES XXI G.K.

241,089

Renewable energy power generation
facilities, etc. rental business

Univergy 10 G.K.

3,984

Renewable energy power generation
facilities, etc. rental business[NOTES ON PER UNIT INFORMATION]
Prior fiscal period
From October 1,2017
to June 30, 2018
Net assets per unit
Net income (Net loss) per unit

96,583 yen
2,007 yen

Current fiscal period
From July 1, 2018
December 31, 2018
96,523 yen
1,932 yen

(Note 1) Net income (Net loss) per unit is calculated by dividing net income (net loss) by the average number of investment units during the period. In theprevious fiscal period, a loss was posted and there were no dilutive investment units, and thus diluted loss per unit is not stated. With respect todiluted profit per unit for the period under review, there are no dilutive investment units, and thus the statement is omitted.
(Note 2) The basis of calculation of net income (net loss) per unit is as follows.

- 26 -

Prior fiscal period
From October 1,2018
to June 30, 2018
Net income (Net loss) (Thousand yen)Amount not attributable to common unit holders(Thousand yen)
Net income (Net loss) attributable to Common unit
holders (Thousand yen)
Average number of investment units during the period(Units)[NOTES ON FACTS ARISING AFTER THE SETTLEMENT OF ACCOUNTS]
Not applicable- 27 -

Current fiscal period
From July 1, 2018
December 31, 2018

330,449

412,187--

330,449

412,287

164,642

213,246

(10) Change in the total number of investment units issued and outstanding
Change in the total number of investment units issued and outstanding and the total amount of unitholders' capital is as shown
below since the establishment of the CSIF.

Date

Event

Total number of investment units
issued and outstanding (units)
ChangeMay 18, 2017
October 27, 2017

November 28, 2017

September 5, 2018

Establishment upon
private placement
Capital increase by
public offering
Capital increase by
third-party
allotment
Capital increase by
public offering

Cash distribution inexcess of earnings
September 14, 2018(refund of

Balance

Total amount of unitholders'
capital (million yen)
ChangeRemarks

Balance

1,500

1,500

150

150

（Note１）

177,800

179,300

16,891

17,041（Note２）

2,890

182,190274

17,315（Note３）

46,667

228,857

4,509

21,824（Note４）-

228,857

147)

21,677（Note５）2,333

231,190

225

21,902（Note６）

investment)
October 4, 2018

Capital increase by
third-party
allotment(Note 1) In the establishment of the CSIF, the investment units were issued at an issue price of ¥100,000 per unit. The party who applied for subscriptionof investment units upon the establishment is Canadian Solar Projects K.K.
(Note 2) New investment units were issued by public offering for the purpose of raising funds for the acquisition of specified assets at an issue price of¥100,000 (issue value of ¥95,000) per unit.
(Note 3) New investment units were issued to Mizuho Securities Co., Ltd. by third-party allotment at an issue value of ¥95,000 per unit for the purpose of
appropriation to a part of the funds for acquisition of specified assets or part of repayment of borrowings.
(Note 4) New investment units were issued by public offering for the purpose of raising funds for the acquisition of specified assets at an issue price of¥102,180 (issue value of ¥96,625) per unit.
(Note 5) CSIF decided, at a meeting of its Board of Directors held on August 14, 2018, to pay a cash distribution in excess of earnings (refund of investment)in an amount of ¥808 per unit for the second fiscal period (ended June 30, 2018), and began to pay it from September 14, 2018.
(Note 6) New investment units were issued to Mizuho Securities Co., Ltd. by third-party allotment at an issue price of ¥96,625 per unit for the purpose of
appropriation to a part of the funds for acquisition of specified assets or a part of the funds for repayment of borrowings.

4. Change of directors
There has been no change of directors since the “Change of Directors” reported in the latest securities report (submitted on
September 26, 2018).

- 28 -

5. Reference(1) Conditions of Investment(as of December 31.2018)
Type of asset

Total Asset-UnderManagement (AUM)(‘000yen)(Note 2)

Region (Note 1)

Hokkaido/Tohoku% of total AUM(Note 3)201,881

0.4

Kanto

2,164,087

4.6

Tokai

460,654

1.0

Chubu

987,611

2.1

Chugoku/Shikoku

10,693,823

22.9

Kyushu22,766,344

48.7

37,274,402

79.7

Hokkaido/Tohoku

48,9700.1

Kanto

519,733

1.1

Tokai

-

-

Chubu

63,3090.1

Chugoku/Shikoku

492,132

1.1

3,184,875

6.8

4,309,021

9.2

-

-

Kanto

99,1510.2

Tokai50,631

0.1

Chubu

274

0.0

3,415

0.0

341,0140.7

494,487

1.1

250,851

0.5

Kanto

2,782,971

6.0

Tokai

511,286

1.1

Chubu

1,051,195

2.3

Chugoku/Shikoku

11,189,371

23.9

Kyushu26,292,233

56.2

42,077,910

90.0

Solar energy facility etc. total

42,077,910

90.0

Saving/other assets

4,695,610

10.0

Asset total (2)46,773,521

100.0Solar energy facility

Subtotal

Land

KyushuSubtotal
Hokkaido/Tohoku

Land lease
Chugoku/Shikoku
KyushuSubtotal
Hokkaido/Tohoku

Solar energy facility etc.

Subtotal- 29 -

(Unit: thousand yen)

% of total AUM(3)Total liabilities

24,458,257

52.3

Total net assets

22,315,263

47.7(Note 1) “Hokkaido and Tohoku” denote Hokkaido, Aomori-ken, Iwate-ken, Akita-ken, Miyagi-ken, Fukushima-ken and Yamagata-ken. “Kanto” denotes
Ibaraki-ken, Tochigi-ken, Gunma-ken, Tokyo-to, Kanagawa-ken, Saitama-ken, Chiba-ken Yamanashi-ken, Nagano-ken and Niigata-ken. “Tokai”
denotes Shizuoka-ken, Aichi-ken, Gifu-ken, Mie-ken, Toyama-ken, Ishikawa-ken and Fukui-ken. “Chugoku and Shikoku” denote Okayama-ken,
Hiroshima-ken, Yamaguchi-ken, Tottori-ken, Shimane-ken, Kagawa-ken, Kochi-ken, Tokushima-ken and Ehime-ken. “Kyushu” denotes
Fukuoka-ken, Oita-ken, Miyazaki-ken, Kagoshima-ken, Kumamoto-ken, Nagasaki-ken, Saga-ken and Okinawa-ken.
(Note 2) The amount posted on the balance sheet as of December 31, 2018. The saving/Other assets includes construction in progress (6,244,000yen) .
(Note 3) The figures have been rounded to the first decimal place.

(2) Investment Assets①Investment Securities
Not Applicable②Investment Properties
Not Applicable③Major Investment Assets
a. summary information for the CSIF
The following table provides summary information for the CSIF current 18 solar energy projects as of December 31, 2018.
PPA purchaseprice(yen/kwh)

Certification
Date

FIT term end

19,86140

February 26,
2013

September
16, 2034

Isa-shi, Kagoshima

22,22340

February 26,
2013

June 8, 2035

CS Kasama-shi
Power Plant

Kasama-shi, Ibaraki

42,666(Note 1)40

January 25,
2013

June 25, 2035

Solar Plant
etc.

CS Isa-shi Daini Power Plant

Isa-shi, Kagoshima

31,81836

October 2,
2013

June 28, 2035

S-05

Solar Plant
etc.

CS Yusui-cho
Power Plant

Aira-gun,Kagoshima

25,27436

March 14,2014

August 20,
2035

S-06

Solar Plant
etc.

CS Isa-shi Daisan Power Plant

Isa-shi, Kagoshima

40,73640

February 26,
2013

September
15, 2035

S-07

Solar Plant
etc.

CS Kasama-shi
Dai-ni Power
Plant

Kasama-shi, Ibaraki

53,27540

January 25,
2013

September23, 2035

S-08

Solar Plant
etc.

CS Hiji-machi
Power Plant

Hayami-gun, Oita

30,24636

July 16, 2013

October 12,
2035

S-09

Solar Plant
etc.

CS Ashikitamachi Power
Plant

Ashikita-gun,
Kumamoto

45,74040

February 26,
2013

December 10,
2035

Asset #

Category

Project nameLocation

Site Area
(m2)

S-01

Solar Plant
etc.

CS Shibushi-shi
Power Plant

Shibushi-shi,
Kagoshima

S-02

Solar Plant
etc.

CS Isa-shi
Power Plant

S-03

Solar Plant
etc.

S-04

- 30 -

S-10

Solar Plant
etc.

CS
Minamishimabar
a-shi Power
Plant (East) / CS
Minamishimabar
a-shi Power
Plant (West)

Minamishimabarashi, Nagasaki

56,066

S-11

Solar Plant
etc.

CS Minanomachi Power
Plant

Chichibu-gun,
Saitama

S-12

Solar Plant
etc.

CS Kannamicho Power Plant

Tagata-gun,Shizuoka

S-13

Solar Plant
etc.

CS Mashikimachi Power
Plant

S-14

Solar Plant
etc.

S-15

S-16

40

February 26,
2013 (East)
February 26,
2013 (West)

December 24,
2035 (East)
January 28,2036 (West)44,90432

December 11,
2014

December 06,
2036

41,33936

March 31,2014

March 02,2037

Kamimashiki-gun,
Kumamoto

638,552（Note2）36

October 24,
2013

June 01, 2037

CS Koriyamashi Power Plan

Koriyama-shi,
Fukushima

30,376（Note1）32

February 27,
2015

September
15, 2036

Solar Plant
etc.

CS Tsuyama-shi
Power Plant

Tsuyama-shi,
Okayama

31,05932

September
26, 2014

June 29, 2037

Solar Plant
etc.

CS Ena-shi
Power Plant

Aza Ochise,
Kusumi, Osashimacho, Ena-shi, Gifu

37,37332

February 24,
2015

September
12, 2037

S-17

Solar Plant
etc.

CS Daisen-choPower Plant (A)and (B)

Aza Magoese,
Toyofusa, Daisencho, Saihaku-gun,Tottori (A)Aza Kamikawara,
Toyofusa, Daisencho, Saihaku-gun,Tottori (B)459,955（Note 3）40

February 22,2013 (A)February 28,
2013 (B)

August 9,
2037

S-18

Solar Plant
etc.

CS Takayamashi Power Plant

Shingumachi,
Takayama-shi, Gifu

16,278（Note 1）32

January 30,
2015

October 09,
2037(Note 1) Site area for the portion of the solar energy plants land under ownership is shown, and excludes the portion of the land
where we hold an easement.
(Note 2) Site area for the portion of the solar energy plants and high-voltage land under ownership is shown, and excludes the portionof the land where we hold an easement.
(Note 3) Site area for the portion of the solar energy plants and high-voltage land under superficies is shown and excludes the portionof the land where we hold an easement.

Asset
#

S-01

Project name

CS Shibushi-shi
Power Plant

Certified
Operator

Tida Power 01
G.K

PPA
company

AcquisitionPrice(millionyen)(Note 1)

KyushuElectric
Power Co.,Inc

Fiscal period
end valuation(million yen)
(Note 2)

Appraisal valueof solar plants(millionyen)(Note 3)(upper：solar
energy facility)(lower：land)

Fiscalperiod end
book value(millionyen) (Note
4)

464
540

597

529
133

- 31 -

S-02

S-03

S-04

S-05

S-06

S-07

S-08

S-09

S-10

S-11

S-12

S-13

CS Isa-shi Power
Plant

Tida Power01
G.K.

KyushuElectric
Power Co.,Inc

CS Kasama-shi
Power Plant

Tida Power01
G.K.

TEPCO
EnergyPartner,
Incorporated

Tida Power01
G.K.

KyushuElectric
Power Co.,IncCS Isa-shi Dai-niPower Plant

CS Yusui-cho
Power Plant

Tida Power01
G.K.

CS Isa-shi Dai-

Tida Power01

san Power Plant

G.K..

CS Kasama-shi
Dai-ni Power
Plant

Tida Power01
G.K..

CS Hiji-machi
Power Plant

Tida Power01
G.K.

CS Ashikitamachi Power
Plant

Tida Power01
G.K..

CS
Minamishimabar
a-shi Power Plant(East) / CS
Minamishimabar
a-shi Power Plant(West)

372
372

907

395

362
23
799

1,078

889
279
778

778

820

753
41

KyushuElectric
Power Co.,
Inc

676
670

707

649
30

KyushuElectric

946
949

Power Co.,
Inc
TEPCO
EnergyPartner,
IncorporatedKyushuElectric
Power Co.,Inc
KyushuElectric
Power Co.,
Inc

1,006

918
59
843

850

892

818
49
1,041

1,029

1,082

995
41
1,015

989

1,055

956
39
1,838

Tida Power 01
G.K.

KyushuElectric
Power Co.,Inc

CS Minanomachi Power
Plant

Tida Power01
G.K.

TEPCO
EnergyPartner,
Incorporated

CS Kannami-cho
Power Plant

Tida Power01
G.K..

TEPCO
EnergyPartner,
Incorporated

CS Mashikimachi Power
Plan

Tida Power01
G.K.

KyushuElectric
Power Co.,
Inc.

1,733

1,915

1,679
77

900
1,018

1,161

1,023
261
533

514

575

500
41
19,73520,08423,035

19,5083,300- 32 -

S-14

S-15

S-16

S-17

S-18

CS Koriyama-shi
Power Plan

Tida Power01
G.K..

TohokuElectric
Power Co.,Inc.

CS Tsuyama-shi
Power Plan

Tida Power01
G.K..

The Chugoku
Electric
Power Co.,Inc.

Tida Power01
G.K..

The Chubu
Electric
Power Co.,Inc.

CS Daisen-choPower Plant (A)and (B)

CLEAN
ENERGIESXXI G.K.

The Chugoku
Electric
Power Co.,Inc.

CS Takayama-shi
Power Plant

Tida Power01
G.K.

The Chubu
Electric
Power Co.,Inc.

CS Ena-shi
Power Plant

212
246

261

250
48
664

746

791

739
127
778

757

813

717
35
10,241

10,447

10,581

10,450
340
269

326

330

334
60
42,111

Total

42,96147,09942,077
4,987(Note 1) Acquisition price is based on acquisition price as described in the purchase agreements (excluding acquisition expenses related to the payment ofoutsourcing service fees, property-related taxes, taxes on depreciable assets, urban planning taxes, consumption taxes and other fees).
(Note 2) Median project valuation report amount is the median amount that we calculated based on the estimated values as of December 31, 2018 provided
to us by PricewaterhouseCoopers Sustainability LLC in its project valuation report. Based on the appraised value in the range stated in thevaluation report with the date of the value opinion on December 31, 2018, which was obtained from PricewaterhouseCoopers Sustainability LLC,
the Investment Corporation calculated the total sum of the intermediate values according to Article 41, paragraph 1 of the CSIF's Articles ofIncorporation, and the said sum is used in the statement.
(Note 3) On the upper row of the appraisal value of solar plants, an assumed appraisal value of solar energy projects that is obtained by deducting the realestate appraisal value calculated by Daiwa Real Estate Appraisal Co., Ltd. from the appraised value at the end of the period in (Note 2) above isstated, and on the lower row, an amount stated in the real estate appraisal report prepared by Daiwa Real Estate Appraisal Co., Ltd. is stated. Realestate includes its superficies right.
(Note 4) Fiscal period end book value is the book value of solar energy as of December 31, 2018.

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b. Revenue and expenses of individual renewable energy power generation facilities
Third fiscal period (from July 1, 2018 to December 31, 2018)(Unit: thousand yen)
Asset number

S-01

S-02

S-03

S-04

S-05

CS Isa-shi
CS Isa-shi CS Kasama-shi Dai-niPower Plant Power Plant Power Plant

CS Yusuicho Power
Plant

Total portfolio

CS Shibushishi PowerPlant

1,322,669

19,235

14,24429,54929,412

23,595462,578

7,474

7,166

11,846

11,59010,410

127

-

-

110

-

-

1,785,374

26,71021,411

41,50641,00334,006

154,262

2,664

1,346

3,050

2,964

2,634

154,262

2,664

1,346

3,050

2,964

2,634

-

-

-

-

-

-

168,528

1,912

2,248

4,359

5,150

4,010

127,128

1,745

1,328

3,033

2,871

2,494

2,055

-

-

1,025

418

-

(Utilities expenses)

-

-

-

-

-

-

(Insurance expenses)

12,900

166

141

299

269

252

(Land rent )26,444

-

778

-

1,590

1,263

-

-

-

-

-

-

Depreciation cost

713,168

9,456

7,833

14,462

16,445

14,229(Structures)

14,471

445

256

324

306

571

(Machinery and equipment)

688,800

8,969

7,559

14,10416,097

13,423(Tools, furniture and fixtures)

9,895

41

17

33

41

235

Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal B)

1,035,958

14,032

11,42821,872

24,55920,873

Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)

749,416

12,677

9,982

19,634

16,443

13,132

Project nameRental revenue of renewable energy
power generation facilities, etc.
Basic rent
Variable rent linked to actual
outputIncidental income
Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)(Repair and maintenance costs)(Other rental cost)- 34 -

(Unit: thousand yen)
Asset number

Project name

S-06

S-07

S-08

S-09

S-10

CS
Minamishimabarashi Power Plant
CS Hiji-machi CS Ashikita-machi(East) / CS
Power Plant
Power Plant
Minamishimabarashi Power Plant(West)CS Kasama-shi
CS Isa-shi Dai- Dai-ni Powersan Power Plant Plant

Rental revenue of renewable energy
power generation facilities, etc.
Basic rent

35,02829,16137,67337,301

65,854

15,056

12,354

17,65015,54330,406

-

-

-

-

-

50,08541,51655,323

52,84596,260

3,526

3,370

4,112

3,972

6,744

3,526

3,370

4,112

3,972

6,744

-

-

-

-

-

5,500

6,000

5,682

5,431

10,331

3,172

3,318

3,733

3,347

5,601

(Repair and maintenance costs)

-

-

75

66

-

(Utilities expenses)

-

-

-

-

-

(Insurance expenses)

290

285

361

336

469

2,036

2,396

1,512

1,681

4,260

-

-

-

-

-

Depreciation cost

19,783

17,60422,06420,20335,224(Structures)

290

247

835

1,441

739

19,441

17,314

21,11418,50934,235(Tools, furniture and fixtures)

51

42

114

252

248

Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal B)

28,80926,97531,85829,60652,299Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)

21,275

14,541

23,46423,23843,960

Variable rent linked to actual
outputIncidental income
Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)(Land rent )(Other rental cost)(Machinery and equipment)- 35 -

(Unit: thousand yen)
Asset number
Project name

S-11

S-12

S-13

S-14

S-15

CS Minano-machi CS Kannami-cho CS Mashiki-machi CS Koriyama-shi CS Tsuyama-shi
Power Plant
Power Plant
Power Plan
Power Plan
Power Plan

Rental revenue of renewable energy
power generation facilities, etc.
Basic rent

30,843

18,550691,759

7,619

22,253

Variable rent linked to actual output

9,769

5,241

254,450

3,978

10,447

1

-

12

2

-

40,61423,791

946,222

11,60032,701

4,904

2,770

112,206

-

-

4,904

2,770

112,206

-

-

-

-

-

-

-

4,143

3,978

67,638

1,081

3,156

3,491

1,905

61,168

922

2,846

330

-

-

-

-

(Utilities expenses)

-

-

-

-

-

(Insurance expenses)

321

125

6,397

158

310

(Land rent )

-

1,947

71

-

-

(Other rental cost)

-

-

-

-

-

Depreciation cost

15,7989,639

344,335

4,191

12,768(Structures)

766

357

3,531

327

348

15,0319,226

332,915

3,864

12,114(Tools, furniture and fixtures)

-

55

7,888

-

304

Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal B)

24,845

16,388524,180

5,272

15,924

Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)

15,7697,402

422,042

6,328

16,776

Incidental income
Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)(Repair and maintenance costs)(Machinery and equipment)- 36 -

(Unit: thousand yen)
Asset number

S-16

S-17

Project name

CS Ena-shi
Power Plant

S-18

CS Daisen-cho
CS Takayama-shi
Power Plant (A)Power Plant
and (B)

Rental revenue of renewable energy
power generation facilities, etc.
Basic rent

14,524

211,123

4,937

Variable rent linked to actual output

7,383

29,966

1,841

-

-

-

21,908241,089

6,779

-

-

-

(Property-related taxes, etc.)

-

-

-

(Other taxes)

-

-

-

2,561

34,450891

1,827

23,490828(Repair and maintenance costs)

-

140

-

(Utilities expenses)

-

-

-

(Insurance expenses)

138

2,511

62

(Land rent )

595

8,308

-

-

-

-

Depreciation cost

9,226

136,406

3,494(Structures)

374

3,088

218

(Machinery and equipment)

8,790

132,820

3,267(Tools, furniture and fixtures)

61

497

8

Total operating revenue from the rental
business of renewable energy power
generation facilities, etc. (subtotal B)

11,788170,857

4,386

Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)

10,12070,232

2,393

Incidental income
Total operating revenue from the rental
business of renewable energy power
generation facilities, etc. (subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties

Expenses(Management entrustment
expenses)(Other rental cost)(Note) The calculation period of the third fiscal period is from July 1,2018 to December 31,2018(184days);
however, the substantial period of above three asset management is from September 6,2018 to
December 31,2018(117days).

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